Question

Gauri went to the stationers and bought things worth Rs.25, out of which 30 paise went on sales tax on taxable purchases. If the tax rate was 6 %, then what was the cost of the tax-free items?

• A. Rs. 15
• B. Rs. 15.70
• C. Rs. 19.70
• D. Rs . 20

Answer 1

The correct option is C Rs. 19.70

Let the amount taxable purchases be Rs. x.

Then, $6$% of $x=\frac{30}{100}$

$=>x=(\frac{30}{100}\times \frac{100}{6})=5$

Cost of tax free items $=Rs.[25-(5+0.30\left)\right]=Rs.19.70$